ANDIKA BULLETin 27 SEPT 2024

The risk-on sentiment prevailing today can likely be chalked up to two developments: deepening of the monetary easing cycle round the globe (except in Australia), and supportive data on the US domestic front.

Policy support. Central banks and governments appear to be following in the footsteps of the Fed, as they take steps to stimulate their economies with rate cuts. Overnight, China announced significant fiscal support on top of the monetary support announced earlier in the week.

In Europe, the Swiss National Bank cut policy rate by 25bp, and Goldman now expects another cut at the December meeting.

Strong US data at home. Finally, we also received a flurry of data overnight that allay concerns about the US economy: Real GDP growth was unrevised at 3.0% annualised in the second quarter consumers are saving more than expected, and initial jobless claims also declined.

he sum of all that was decent gains for the US majors with the SP500 reaching its 24th record high so far in 2024.

The old relic Gold continued its charge to new highs, hitting USD$2,685 overnight while Bitcoin surged back above USD$65,000 for the first time since July.

Finally, is this the start of Bitcoin's breakout to new highs?

Gold has certainly shown the other alternate currency the way (and now Beijing is back in the game).

Happy Friday!

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